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R.R. Donnelley to Close Des Moines Printing Plant Employing 775

Tuesday, May 01, 2001

Press release from the issuing company

CHICAGO, April 30, 2001 - R.R. Donnelley & Sons Company [NYSE: DNY] has decided to close its Des Moines, Iowa, printing plant, which employs approximately 775 people. Production will be transitioned gradually to other plants in the company's nationally integrated network of long-run printing plants serving magazine, catalog and retail customers. The Des Moines plant is expected to shut down completely by July 1, 2002. R.R. Donnelley's Des Moines plant, one of the smaller plants in the company's network, produces a variety of magazines under long-term contracts, as well as catalogs and newspaper advertising inserts. R.R. Donnelley acquired the plant in 1990. Following extensive review, R.R. Donnelley's decision is based on three key internal factors: the plant's size and scale; the age and quality of the printing equipment; and the plant's accessibility to major population centers. "Our highest priority right now is to our employees, our customers and the local community," commented Robert S. Pyzdrowski, president of commercial print operations for R.R. Donnelley. Stressing that the decision was not about the ability to do business in the State of Iowa, Pyzdrowski continued, "Governor Vilsack, the Greater Des Moines Partnership and Iowa Department of Economic Development were especially understanding partners to us as we considered the decision." He added, "While the business decision makes sense, it's more difficult to make it when you consider how it affects people's lives. We are committed to assisting our employees during the transition." While no decisions have been made yet about where production will transfer, the company will reinforce its partnership with customers through its recently announced strategy of creating the most cost-effective, integrated and flexible printing "platform of the future." To help customers improve the effectiveness of their communications, over the next two years, the company will invest $300 million to improve the efficiency of its printing network by retiring several older presses and replacing them with 10 new presses and related binding equipment. "For our customers that means improved speed to market, operating flexibility and reduced waste," Pyzdrowski said. "We remain committed to providing our catalog, magazine and retail print customers with exceptional customer service and quality, along with the broadest range of services from content management through distribution."

 

 

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